On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Credit Debit $ 58,800 25,200 $ 2,300 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 36,400 13,200 156,000 14,900 221,000 51,400 $ 289,600 $ 289,600 During January 2021, the following transactions occurred: January 1 Purchased equipment for $19,600. The company estimates a residual value of $1,600 and a six-year service life. January 4 Paid cash on accounts payable, $9,600. January 8 Purchased additional inventory on account, $83,900. January 15 Received cash on accounts receivable, $22,100 January 19 Paid cash for salaries, $29,900. January 28 Paid cash for January utilities, $16,600. January 30 Firework sales for January totaled $221,000. All of these sales were on account. The cost of the units sold was $115,500. The following information is available on January 31, 2021 a. Depreciation on the equipment for the month of January is calculated using the straight line method. b. At the end of January, $3,100 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. The note receivable of $13.200 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts c. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $32,700. Armor income tavne at the end of January are 9100 The following information is available on January 31, 2021 a. Depreciation on the equipment for the month of January is calculated using the straight-line method, b. At the end of January $3.100 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. The note receivable of $13,200 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts. c. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $32,700. e. Accrued income taxes at the end of January are $9,100. Requirement General General Journal Trial Income Trial Balance Ledger Statement Balance Sheet Analysis 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-8) assuming a perpetual FIFO inventory system. The transaction on January 30 requires two entries: one to record sales revenue and one to record cost of goods sold. Review the "General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31 in the 'General Journal tal (these are shown as items 9-13). 3. Review the adjusted Trial Balance as of January 31, 2021, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2021, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of January 31, 2021, in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 14-15). 7. Using the information from the requirements above, complete the 'Analysis' tab. Requirement General Journal > Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal ent in the first account field.) View transaction list Journal entry worksheet
